Evaluating the risks unique to overseas business in concrete terms, then preparing a risk aversion plan before commencing international expansion is the most basic of basics.
Let’s start by taking a look at whether or not your company is capable of international expansion.
Exactly what factors are considered when conducting a feasibility study?
For example, is your business model strong from an international perspective?
Our business is popular in Japan so, for the time being, I think we’ll just apply the same business model to international expansion.
When a product or service is highly regarded in Japan, it may do well overseas as is, but then again, it may not.
We need to carefully re-evaluate why the product or service is selling well in Japan, its essential elements, and its strengths from the perspective of international application.
After due consideration, we may realize that a business would not be viable overseas, or, on the other hand, come to see that the market is broader than first imagined and potential exists for exports to multiple countries.
I see. I guess we should reconsider international expansion more carefully.
Also, overseas countries have their own forms of PL insurance, instruction manuals, corporate credit checks, contracts, laws, and business customs.
If a business is unprepared to handle these, it will no doubt take on great risk if it attempts international expansion.
We probably still aren’t prepared for that…
In regards to intellectual property also, your company may unknowingly be infringing another company’s rights in an overseas market.
That kind of thing actually happens? It isn’t just to prevent counterfeiting, then?
In addition, you need to confirm whether or not the product or service can be sold overseas from the perspective of the target country’s regulations/standards.
There’s a chance we can’t export our product? I see, that’s the first hurdle…oh dear.
Feasibility studies are very important, aren’t they?
Yes, very important!
